Crypto Security Start With You

A brief overview of crypto security for those who are dealing with cryptocurrencies for the first time

Crypto security for the end user is always a matter of personal interest. By transacting through crypto, you always run the risk of losing everything with no possibility of recovery. In this case – decentralisation and anonymity is a problem rather than an advantage of the system. Let’s tell you briefly about what you need to know for those who are concerned about security issues when transferring via Bitcoin, Etherium, etc. for the first time. 

Is crypto a security?

Let’s start with the fact that there is no definite answer yet whether crypto is considered a security. Neither bitcoin nor other crypto are officially put up for IPO and are essentially decentralised tokens. This raises a number of uncomfortable security issues:

  1. There is no official recognition of crypto in many countries.
  2. In the event of a scammer’s action, there is nowhere to turn.
  3. Even if an appeal is accepted, the investigation is extremely slow and the perpetrators are unlikely to be punished. 

It is for this reason that the user must first and foremost provide his own protection. 

What is a security in crypto

For the user, security in this area is reduced to the following aspects:

  1. The use of initially verified non-fraudulent wallets (we will talk about them below).
  2. Protecting your own keys from loss and theft by intruders.
  3. Trading and withdrawing money only through trusted exchanges (we will also talk about them below).

Best crypto wallets for security

In many ways crypto wallet security depends on whether it is hardware or software. Hardware types of wallets are the most secure. They look like flash drives on which all the keys are stored. The best among them can be named:

Ledger Nano X;

Atomic Wallet.

There are also good variants of software wallets. For example, this is Exodus. Software versions, although less secure, are more convenient. 

Crypto exchange security

Sooner or later the owner of Bitcoin and other similar currency decides to withdraw his assets, exchanging them, for example, for fiat currency. Special exchanges are used for this purpose. Choosing an exchange for secure trading, we would recommend you to pay attention to two aspects:

  1. The need for identity confirmation. On the one hand, anonymity is important for many people, on the other hand – if no one knows you, you will not be able to protect yourself in any way in case of problems with the exchange. 
  2. Type of exchange – centralised or not. Decentralised options are more secure in terms of user privacy. 

Crypto security audit

Crypto security audit is conducted to check how well a system related to blockchain technology is protected against errors and hacks. It is carried out by specialised companies. There are also separate tools for checking resources related to transactions via cryptocurrencies. For example, many developers use the MythX tool to detect problems when working with Ethereum.